TEHRAN, June 6, YJC -Police are responding to a hostage situation after an explosion at a south-east Melbourne apartment block.

TEHRAN,Young Journalists Club(YJC) -Emergency services were called to the scene on Bay Street about 4pm on Monday where they located the body of a man who appeared to have been shot in the foyer of the building.

Police are trying to negotiate with a man inside one of the apartments, who is belived to be holding a woman hostage.

Shots have rung out at the scene with residents told to take cover at a nearby Coles, while those in the building have been evacuated.

Roads are closed in the vicinity and we urge the community to avoid the area.